CNA Financial Corp. said it turned a profit for the first quarter due to higher net investment income driven by limited partnership and stock returns, as well as better non-catastrophe current accident year underwriting results.
The commercial property and casualty insurance company on Monday posted net income of $312 million, compared with a loss of $61 million in the same period last year. It reported earnings of $1.14 a share, compared with a loss of 23 cents a share in the year-ago period.
Core earnings for the period was $263 million, or 96 cents a share. Analysts polled by FactSet were expecting operating earnings of 88 cents a share.
Core income in property and casualty operations rose to $263 million from $121 million. Specialty-segment core income was $170 million, up from $96 million. Core income in the commercial segment was $69 million, compared with $23 million in the year-ago period. International core income was $24 million, up from $2 million. Life and group core income rose to $36 million from $4 million.
Core loss in the corporate and other segment widened to $36 million from $17 million due to a recognition of a $12 million after-tax loss from the cession of a legacy portfolio of excess workers’ compensation policies under a retroactive reinsurance agreement, the company said.
Net investment income rose to $504 million from $329 million.
“We remain bullish about our growth opportunities for the remainder of the year as we expect favorable market conditions to persist,” Chairman and Chief Executive Dino Robusto said.